-April 1,2020-
Mortgage applications increased 15.3 percent from one week earlier, according to data from the Mortgage Bankers Association. (MBA) Weekly Mortgage Applications Survey for the week ending March 27, 2020.
Nevertheless, the unadjusted Purchase Index decreased 10 percent compared with the previous week and was 24 percent lower than the same week one year ago.
That matches the year over year drop in applications in Calif, in the week ending 3/ 20.It was worse in California in the week ending 3/27 with purchase applications dropping 36% year over year (see chart).
“Mortgage rates and applications continue to experience significant volatility from the economic and financial market uncertainty caused by the coronavirus crisis. After two weeks of sizeable increases, mortgage rates dropped back to the lowest level in MBA’s survey, which in turn led to a 25 percent jump in refinance .applications,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
“The bleaker economic outlook, along with the first wave of realized job losses reported in last week’s unemployment claims numbers, likely caused potential homebuyers to pull back. Purchase applications were down over 10 percent, and after double-digit annual growth to start 2020, activity has fallen off last year’s pace for two straight weeks.”
Added Kan, “Buyer and seller traffic – and ultimately home purchases – will also likely be slowed this spring by the restrictions ordered in several states on in-person activities.”